New starter

islate

Hi Everyone,

I'm new to this forum and I'm here to find some helpful advise in tackling my Credit card and OD debt.

I've got 12k from 6 credit cards 6k from 2 OD accounts

All cards are on 17% Apr and 3k OD on 19 % apr and the other 3k OD with an interest free and its only charges a flat fee of £10 a month

and recently 3 of my CCs run out of the 0% deal. so basically from this month I'll have to pay interest on all of them.

I need at least 3 to 4 years to pay off all my debts but I'm not sure whether to go for another BT deal or get a long term personal loan and stuck em all together and start paying them off

I tried applying for a new Credit card from Santander that I have a current account wih but strangely they denied my application which was a real shock to me. My credit rating is good and I never got rejected for a card during the last 4 years. I used to get an average 3k limit for most of my application.


I can spare 400 a month with my current job and I would like to know what will be the best option. If I can get a loan under 9% APR that'll do me. Please give me your valuable feedback

islate

lots of views but no response to my query...am I on the wrong section of the forum...please let me know

La_escocesa

Hi,

A lot of people on these boards are against consolidation loans, but that might work for you...

I'd probably try doing an online snowball calculator, but I guess if all the APRs on your credit cards are the same then that wouldn't tell you much... http://www.whatsthecost.com/snowball.aspx

The other thing you can do is post your Statement of Affairs and then people can advise how you could cut back in other ways so you can use more money to pay off your debts quicker. http://www.makesenseofcards.com/soacalc.html Even if you don't post it on here I find that one is useful to do for budgetting etc.

Hope that helps!

GAH

OP, if you provide a little more information, such as your salary people maybe able to comment further on your situation.

As I read it, you 18k worth of debt. If you were to apply for another £18k loan to consolidate, then you would need to be earning £70k plus a year, which no offence, you probably are not earning as you would already have a decent amount of money to through at your debts.

As mentioned above, do yourself a Statement of Affairs, and you you can post it here and people will always give you helpful suggestions where you can cut back.

Cutting back is always the first starting point, and you will be surprised sometimes when you see it in writing what areas you can actually make savings

MiaowMiaow

Hi :-)

Definitely post your full SOA and you will get lots of advice xx

mrsb83_2

Use the snowball calculator at whatsthecost.com to help you figure out in which order you should be paying back.

I'd be wary of getting a loan because you are clearly overspending and you need to address that before taking more credit. I don't think your application would be successful in any event.

pennypusher

Hi post up your Statement of Affairs and people will have a better idea of your finances and which way would help you most.

islate

sorry for the delayed reply...here comes the statement of affiars...I'm really looking forward to your reply


Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 2100
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3580

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 20
Council tax............................. 100
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 38
Telephone (land line)................... 18
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 23
Internet Services....................... 10
Groceries etc. ......................... 260
Clothing................................ 20
Petrol/diesel........................... 240
Road tax................................ 20
Car Insurance........................... 65
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 220
Childcare/nursery....................... 550
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 11
Life assurance ......................... 30
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 8
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1855


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 1200
Other assets............................ 0
Total Assets............................ 181200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Barclays.......................1800......41........17.5
Natwest........................500.......11........18
Egg............................2620......56........17
od 2...........................3000......20........0
od 1...........................3000......50........19
cone cc........................200.......15........23
Hbos cc........................2200......21........17.5
Post office cc.................2200......56........17.5
Mbna...........................2000......41........17
Total unsecured debts..........17520.....311.......-


Monthly Budget Summary
Total monthly income.................... 3,580
Expenses (including HP & secured debts). 1,855
Available for debt repayments........... 1,725
Monthly UNsecured debt repayments....... 311
Amount left after debt repayments....... 1,414

Personal Balance Sheet Summary
Total assets (things you own)........... 181,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,520
Net Assets.............................. 163,680

tking

Hi, well done for doing your SOA. First question everyone will ask is - Do you really have 1414 pounds left at the end of each month?!

If not, where is it going - if you don't know then I would suggest a spending diary to keep track of the ATM withdrawals and extra spends for a month to see what your real budget is.

If you can stick rigidly to the budget you have listed in your SOA you could pay off all your debts in less than 15 months!

However, you need to work out what you have spent on with the current debts and how that can be avoided.

Other more informed peeps will be along to comment on your SOA I'm sure.

Good luck.

mrsb83_2

You said you can spare £400 for debt repayment, but your SOA shows you have £1400 left over.

If you don't have this, you need to check that your SOA is accurate - does it show what you actually spend or what you'd like to spend? Start a spending diary to figure out where that £1000 is disappearing to.

downsizer3

You spend a lot on travel - any way to cut back on that?
Mortgage free is great so give yourselfa pat on the back for that!